IIUSA members can access all of the court documents filed in the Chicago Convention Center enforcement action by the Securities and Exchange Commission (SEC) by viewing the resource page: SEC Enforcement Actions in EB-5. This includes the latest filings from this week, including: a motion to dismiss by the defense, response from the SEC, and subsequent response from the defense. In the court order that followed, the next status hearing for the litigation was postponed from May to July.
The new court filings follow an IIUSA supported court order to unfreeze the affected funds and instruct the escrow agent to begin returning the principal funds to the investors. IIUSA quickly sent a letter to the Beijing Exit/Entry Service Association informing them of the return of the funds directly to the investors, stating: “This welcome news demonstrates that U.S. securities laws protect investors from fraud and breach of contract – efficiently making investors as financially whole as possible, while respecting individual choice, by returning the frozen funds directly to investors.” The news was welcomed by IIUSA industry counterparts in China, and quick posted by the Beijing Exit/Entry Service Association to its website.
IIUSA will continue to monitor this case closely and keep the industry updated accordingly. Stay tuned for more.